Make your Own Cryptocurrency

Cryptocurrency is a decentralized digital currency that is not issued by a central financial authority. Cryptocurrencies are also used as a form of exchange for products, services, and also fiat currencies. The majority of these cryptocurrencies are created by tech and financial companies to serve specific purposes. For example, the Ethereum technology is used for recording transactions. However, do you know you can make your own cryptocurrency? There are over 10,000  cryptocurrencies in the market and yours can be one of them. This article will take you through how to make your own cryptocurrency without any hassle.

Why Make Your Own Cryptocurrency?

Cryptocurrencies are blockchain projects that are used for specific purposes. This could be either for financial purposes or technology-based purposes. While most of these cryptocurrencies are made by tech or financial institutions, it is possible to make your own cryptocurrency as a business owner or as an individual. It is now being encouraged that small and medium businesses should make their own cryptocurrency for ease of business and other benefits. Just like any other innovation, making your own cryptocurrency has its advantages and disadvantages.

Pros of Making Your Own Cryptocurrency

1. Effective Branding Strategy – There are different branding strategies you can use for your business. Making your own cryptocurrency is now an effective strategy. Big businesses such as Microsoft have made their own cryptocurrency and it will bode well for your business to jump on the trend. Cryptocurrency is the future and making your own will show that the business is futuristic and technology inclined. It will also increase the trust customers have in your business.
2. Cheap and Secured Transactions – The decentralized crypto technology will ensure a secured transaction for you and your customers. You also get to save money for your business when you make your own cryptocurrency. Tracking your transactions will be easy with your own cryptocurrency so you don’t have to spend extra cash on record keeping. For businesses with international clients, having your own cryptocurrency will save you transaction fees and unnecessary taxes for every transaction.
3. Flexibility – Cryptocurrencies are created for specific purposes. This means that you can create your own cryptocurrency to cater solely for your business. Apart from that, you will also be able to reach out to more international customers. Not to mention that crypto transactions can’t be tracked, monitored, or controlled by a central financial agency. You can also exchange it for other cryptocurrencies or fiat currency.
4. Raising Funds – Many of the existing cryptocurrencies started by crowdfunding for a project. So if you’re looking to raise money for your business idea, you can make your own cryptocurrency. You can do this by launching an ICO. This is where people will buy your crypto coin or token and you are able to raise funds for your business. This will depend on the viability of your crypto project. It is what will attract investors to put their money in your crypto project.

Cons Of Making Your Own Cryptocurrency

1. Price Volatility and Lack Of Value – Generally, the crypto market is subject to the dictates of supply and demand and other dictates of the financial market. This may affect the value of your cryptocurrency and may also affect your business if not handled carefully.
2. Cybersecurity Problems – Cryptocurrency is open to cybersecurity breaches by hackers. There have been news of ICOs getting hacked and costing investors a lot of money. When you make your own cryptocurrency, you must ensure you use up-to-date security infrastructure to prevent hackers from gaining access.
3. Territorial Regulations – For businesses with international clients, it may be difficult for them to use your cryptocurrency to exchange for your products and services. Some territories accept crypto more than others. So this may be a limiting factor. If you have customers in territories that still prefer to use the conventional payment methods like credit cards or PayPal, it may affect your business.

How To Make Your Own Cryptocurrency

Everyone is jumping on the trend of cryptocurrency. Big financial corporations, tech companies, blogs, and small businesses now see a reason to have their own cryptocurrency. Making your own cryptocurrency is a bit complex and there are steps you have to follow to create it successfully.

1. Have A Reason – For your cryptocurrency to have value among the numerous other digital currencies, it is advisable to have a reason for creating it. You should have what you want to achieve with it and your target market. It could be for your business, technology purpose, or financial transaction purpose.
2. Pick A Consensus Algorithm – This step is to ensure that all transactions are legitimate and all nodes on the networks are synchronized. The popular algorithms used are Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).
3. Choose A Blockchain Platform – Your decisions from the preceding step will now determine which blockchain to use to build your cryptocurrency. Some of the top blockchain platforms include Ethereum, IOTA, and Stellar.
4. Design The Nodes – Nodes are programs that validate transactions for security and efficiency. You can design your nodes to suit the purpose and functionality of your cryptocurrency. Some of the things to consider when designing the nodes include public or private permissions, hosting options, picking a base operating system, and the required hardware details for execution.
5. Establish Your Blockchain’s Internal Architecture – The internal architecture is important because once you launch, it cannot be changed. Some of the parameters that will be set in the internal architecture include rules of asset issuance, the format of the keys, and block signatures.
6. Integrate APIs – It is important to choose a blockchain platform that supports APIs. You can, however, use third-party providers to integrate APIs with your blockchain. Some blockchain API providers include Gem, Bitcore, Tieron, and ChromaWay.
7. Design Your Interface – This next step is very essential to the acceptability of your cryptocurrency. You must ensure that the FTP servers, web, and external databases are the latest and the front and back end programming can be upgraded in the future. You can use Node JS or Angular JS for your front-end programming. For the back-end programming, you can use Javascript, Java, C#, Ruby, or CSS.
8. Make Your Crypto Legal – This stage is very important because it is what will ensure that your cryptocurrency is preserved and survives any potential legal problems. Make sure that your cryptocurrency is in line with both domestic and international cryptocurrency regulations.
9. Promote Your Cryptocurrency – This is another important step because it is what will put your crypto project out there. You can use popular channels that will help you promote cryptocurrency to the crypto community. Platforms such as Reddit, Telegram, and Twitter are suitable for promotion.

How Much Will It Cost You To Make Your Own Cryptocurrency

Making your own cryptocurrency will help your business gain traction across borders. The cost of your cryptocurrency will depend on the functionality and purpose. You can also partner with cryptocurrency development companies to make and launch your own cryptocurrency.

On average, making your own cryptocurrency will cost you between $2,000 to $5,000. If you desire a feature-rich and custom-built cryptocurrency, it may cost you as high as $5,000.

Alternatively, if you wish to start your crypto journey with a smaller investment, you could start investing smaller amounts of money into already established cryptos, such as Bitcoin, Ethereum, Litecoin, and Ripple.

How Hard Is It To Make Your Own Cryptocurrency

The fact that there are over 10,000 cryptocurrencies shows that is it quite easy to create. Most businesses are now creating their own cryptocurrencies to promote their business and make it easier for their customers to pay for their products and services.

With every information that you need available online, making your cryptocurrency is not that hard, especially if you have a competent and reliable crypto developer as a partner. Some of the stages are however more tedious than the others. For example, editing the source code can take a long period due to the changing of the integrated parameters. It is also a bit difficult to keep the momentum after creating your crypto coin and then going on to have your ICO. It was estimated that half of the ICOs in 2020 failed to raise enough funding or went out of business after launch.

Overall, if you follow the right steps, you will find making your own cryptocurrency a piece of cake. You can also seek professional assistance if you’re finding it difficult.

Is It Legal To Make Your Own Cryptocurrency?

It is totally legal to make your own cryptocurrency and tokens for your personal use or for your business. Big corporations are now buying into the idea of cryptocurrency and making their own cryptocurrency to promote their business.

However, it is important to be in line with the requisite domestic and international cryptocurrency regulations. This is what will ensure that your cryptocurrency stands the test of time. Ensure that you have the answer to specific DIY Coin questions such as the business model, how you intend to issue the coin, and what it will be used for.

When deciding what type of crypto to make, you should consider some factors that will make your crypto worthwhile for users. For instance, models like the Fear and Greed Index help to determine the worth of cryptocurrency.

One very important thing to note is that the crypto must have a solid use case. What this means is that your cryptocurrency must be useful to a particular set of people and for a particular purpose.

For business owners, it is important to create a cryptocurrency that will promote your business and will aid your customers in paying for your products and services.